MICR Check Printing for Small Business: What You Need

MICR check printing lets a small business print its own checks (cheques) on blank stock instead of ordering pre-printed books. It can simplify accounts payable and payroll, especially when your accounting software already produces the payment. But the line of numbers at the bottom of a check has to be printed in a specific font, in a specific position, usually with magnetic toner, so bank equipment can read it. This guide explains what you need, how to test it, and the security controls that go with it.

What the MICR line is

MICR stands for magnetic ink character recognition. The MICR line at the bottom of a check carries the bank routing number, the account number and the check number, in a special font printed with ink or toner that can be magnetised. Bank equipment reads the line magnetically and from the check image to sort and clear it.

Two MICR fonts are in use:

• E-13B, standardised in ISO 1004-1, used in the US, Canada, the UK, Australia and many other countries. It has 14 characters: the ten digits plus transit, on-us, amount and dash symbols.
• CMC-7, standardised in ISO 1004-2, used widely in continental Europe and South America.

US check standards are developed by the Accredited Standards Committee X9. Your bank or check stock supplier can tell you which specifications apply.

What you need

A suitable laser printer

Most in-house check printing uses a mono laser printer for which a MICR toner cartridge is available. Some printers are sold as MICR models with matching toner and fonts; others accept third-party MICR toner. Ask the printer or toner supplier which models are supported. Our laser vs inkjet guide covers the general differences.

Many businesses keep one printer, or one tray, just for checks. That avoids swapping cartridges, which is easy to forget, and makes it easier to secure.

MICR toner

MICR toner contains magnetic material, usually iron oxide. Standard toner may look the same but does not carry the magnetic signal banks may rely on. Practices vary, so ask your bank whether magnetic toner is required for the checks you will issue.

Blank check stock

Blank check stock is paper with the check layout and security features already printed, such as microprinting, a warning band, chemical sensitivity or a void pantograph that shows “VOID” when copied. Buy from a reputable supplier and confirm the stock meets your bank’s requirements.

Software

Your accounting system or dedicated check software prints the payee, amount, date, signature line and MICR line. It must use a proper MICR font and place the line within the clear band at the bottom of the check. Many packages include alignment settings; use them rather than adjusting printer margins.

Test before you issue

Before sending a single check:

1. Print several samples with your printer, toner, stock and software.
2. Check the alignment visually against the supplier’s template.
3. Take or send samples to your bank and ask them to verify the MICR line reads correctly.
4. Fix any problems the bank reports, then retest.

Repeat the test after changing printer, toner brand, stock supplier or software version.

Security controls

Printing checks in-house moves some fraud risk inside your office. Basic controls:

• Lock up blank stock and keep a log of check number ranges received and used.
• Restrict the printer: a dedicated device in a controlled area, or secure print release for check jobs, so printed checks are not left in a tray.
• Limit software access: only named staff can print checks, and someone else approves payments.
• Void and keep spoiled checks rather than throwing them away.
• Reconcile your bank account regularly and use positive pay or similar services if your bank offers them.
• Secure the device, as in our network printer security checklist, because a check printer on the network can be reached like any other.

Accounting practices that print checks for clients should include the printer in their wider security plan; see printer for an accounting firm.

Checks and image clearing

In the US, the Check 21 Act allows banks to exchange check images and to use substitute checks made from those images, and the Federal Reserve’s Regulation CC covers the collection of checks. This means the image and print quality of your checks matter as well as the magnetic line. Use good stock and keep the printer well maintained so the payee, amount and signature print cleanly; our office printer maintenance checklist covers routine care.

Common MICR printing problems

Most rejected or slow-clearing checks come from a short list of causes:

• Wrong toner: a standard cartridge was left in the printer after other work. A dedicated check printer or a clearly labelled tray avoids this.
• Misaligned MICR line: the line sits too high, too low or too close to the edge. Use the software’s alignment settings and the stock supplier’s template.
• Faint or broken characters: a nearly empty cartridge or a worn drum produces light print that may not read. Replace supplies before they run out.
• Damaged checks: folding, stapling or creasing across the MICR line can stop it reading.

Keep a few test prints from each new cartridge with the check log so you can show when a problem started.

When to outsource or skip it

In-house MICR printing makes sense when you issue checks regularly from accounting software. It may not be worth it if:

• you write only a few checks a month: pre-printed checks from your bank or a supplier may be simpler;
• most of your payments can move to electronic transfer, which avoids check stock and printing altogether;
• your payroll provider or bank already offers check printing as part of its service.

Compare the cost of MICR toner, stock and time against the alternatives, as described in printer total cost of ownership.

Summary

MICR check printing needs a laser printer with MICR toner, security check stock, software that prints the E-13B or CMC-7 line correctly, and bank testing before use. Treat the printer and blank stock as financial controls, and consider whether pre-printed checks or electronic payments would serve you better.